Bay Area Communications Servicing and Installation--205% ROI
With a 35% profit margin and 35 years in business!
With a 205% ROI, over 2,000 clients, 35 years in business, and a 35% 3-Yr Avg profit margin, this Bay Area communications servicing and installation company is well equipped for future growth and success! Operations by this company are split into two areas with an emphasis on the first: servicing existing systems with clients, and installation of new systems when needed. Servicing existing systems includes fixing security systems in a building (such as card access or push-button points) and fixing internal phone lines. Installation of newer communications systems comes with contracts for new office or residential spaces. Service jobs are typically charged at a fair hourly rate (around $150/hr) while new installations are given a fixed price prior to the work. Bids for installation jobs are made for work one month out or less with a quick turnaround time. Servicing and installation jobs take no more than five days to complete.
There are 4 FT employees with 2 working in-office (1 Bookkeeping and HR | 1 Programmer for System Installation) and 2 in the field working on the servicing and installation jobs. The current owner is involved in the day-to-day management of operations and views key areas of growth such as expanding operations (such as building additional office space) into major cities such as Sacramento and expanding the overall provided services to match new building security trends (including the video market for security cameras, and installation of Ring-type doorbell cameras) and focusing on installing Internet systems for clients.
With a listing price of $995,000, this business provides an extremely consistent flow of work with plenty of time for a transition period. Along with an immense client list and numerous opportunities for growth, this business is not one to pass up!
Year Established: 1986
Location: Oakland, California
Service Area: Bay Area and surrounding region (including San Jose)
Services: Servicing and fixing current communication and security systems (card access for doors, internal phone systems) and installation of new systems when needed
Clients: Office and Residential building spaces that require service maintenance of current communication/security systems or in need of new systems
Lease: 1,500 sq ft--$3,000/month and option to renew for 5 additional years
Reason for Selling: Retirement
Personnel: 4 FT (2 FT in Office—1 Bookkeeping and Human Resources | 1 Programming for System Installation) (2 FT in Field doing Servicing and Installation work)
Growth Opportunities: Expanding operations further to inland major cities (Sacramento) and expanding provided services (including Internet systems installations)Current Owners’ Responsibilities: Day-to-day management of operations
- List Price: $995,000
- 2020 Cash Flow: $259,687
- 2019 Cash Flow: $457,198
- 2018 Cash Flow: $282,910
Cash Flow Analysis
|Description of Financial Statement||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$296,016||$505,331||$334,616|
|Meals & Entertainment||$3,632||$4,718||$3,964|
|Seller's Cash Flow = Total Addbacks + Net Income||$259,687||$457,198||$282,910|
|Profit Margin||31.85 %||40.20 %||33.97 %|
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